Senate Bill 245 and House Bill 1279 (a similar bill) Would Lead to Unbridled Increases in Phone Rates and Allow SBC/AT&T to Drive out Competitors!
Although SBC/AT&T is the major lobbying force behind Senate Bill (SB) 245, the legislation would also apply to Verizon/MCI. SB 245 (the primary legislation):

• Allows for automatic rate increases for phone customers, as high as 30%, over the next 3 years and Local Measured Service (per minute charging).
• In 2009, allows monopoly phone companies to set their own rates.
• Whether you want the service or not, forces ratepayers to pay for SBC/AT&T’s broadband Internet investments through rate increases and tax abatements.
• Ratepayer and taxpayer subsidies will offset any reduction in cable rates and SBC/AT&T will be able to drive out the competition with your money.

SB 245 Threatens Affordability and Reliability of Phone Service
Beginning in 2009, the IURC could not put any limits on telephone rates and would not be able to set quality of service standards. The bill would take away the IURC’s authority, making them powerless in situations like the SBC service-quality melt-down of 2000 in Indiana and in the Midwest.

Customers will not be able to predict their phone costs, nor count on reliability of service.

SBC/AT&T is Deceiving the Public When it Claims that Eliminations of Basic Local Service is Necessary to Provide High-Speed Internet Service
SBC/AT&T argues that it needs complete deregulation of local phone service in order to deploy broadband (high-speed) Internet technology throughout its service territory. However, the IURC has already ordered the major telephone companies to deploy these services and the Federal Communications Commission (FCC) shows increased penetration in the Indiana market:

• By June 30, 2008, SBC/AT&T is mandated to make broadband Internet services available to 77% of its customers, with at least 30% of deployment in rural areas.
• By December 31, 2007, Verizon is mandated to make broadband Internet services available to 73% of its customers, with at least 40% of deployment in rural areas.
• The FCC estimates a 53% increase in broadband lines in Indiana since 2003.

SB 245 and HB 1279 are Completely Unjustified Because SBC/AT&T Already Has a Stranglehold on Every Area of Telecommunications Service in the State

SBC is Bigger and Badder After Buying AT&T
SBC recently bought AT&T, its largest competitor for local phone service. SBC/AT&T is:

• The largest provider of wireless service in the country, with nearly 50 million customers.
• The largest provider of DSL (high-speed or broadband) Internet service in the world.
• The largest provider of local phone service in its monopoly territories, in Indiana controlling 93% of local telephone lines.
• The largest provider of long-distance service in its monopoly territories.
• Ten to fifteen times the size of its nearest competitor in any of its monopoly territories nationwide, with estimated annual revenues of over $90 billion.

PLEASE ACT NOW!
Call Governor Mitch Daniels and Your State Legislators Today: Tell them to oppose SB 245 and HB 1279!

• Contact your Senator at 317-232-9400 or 800-382-9467
• Contact the Governor at 317-232-4567
• Contact your Representative at 317-232-9600 or 800-382-9842